capital raising and equity stake, page-11

And so the news is announced. This is what I was trying to allude to yesterday. And now the name of the hedge fund/Chandler has been announced. Apparently he is getting the gig because he supports the pulp mill. As I said.

However he wants his pound of flesh and the rumour was he wants a large chunk of the company at sub 10c. Think about this guys. If the company is looking to raise $200-300m what is that going to do to existing shareholders with a market cap of $100m? Massive dilution.

The winners from this are in the following order;

Chandler
Gunns management (who are conducting a fire sale campaign of good assets and are wedded to the pulp mill)
MIS Growers
GNSPA Holders

Big losers are existing GNS shareholders in my view as the equity is now virtually worthless.

It seems that this is nothing to do with the pulp mill.

Andd by the way have any of you followed the fiasco of Sino Forests?

Lord